13 Best Precious Metals ETFs In Canada (2022)

Precious metals are a popular asset class worldwide. These metals are often viewed as a good hedge against inflation, which is debatable.

Rather than buying the actual commodity itself, it’s way more convenient to buy an ETF.

My guide to the best precious metals ETFs in Canada will identify some of the top investment products you can consider for this purpose.

The Best Precious Metals ETFs In Canada

This section of my guide to the best precious metals ETFs in Canada will give you a breakdown of the top investment products you can consider investing in for exposure to the performance of these commodities.

Several ETFs in Canada offer investors direct and indirect exposure to the performance of various precious metals. I will divide this section of my guide based on the two most popular precious metals: gold and silver.

Top Gold ETFs In Canada

Top Gold ETFs In Canada

Gold is widely regarded as an effective hedge against inflation and market downturns. Investors flock in droves to buy gold and gold-related assets during volatile market environments.

Buying gold bullion as a hedge might not be viable for many investors due to accessibility issues, storage problems, and a lack of liquidity.

The TSX boasts several ETFs that focus on gold and gold-related companies.

1. iShares Gold Bullion ETF (CGL)

ishares logo

Some key facts about iShares Gold Bullion ETF (CGL):

  • Ticker: TSX:CGL
  • Inception Date: May 28, 2009
  • Assets Under Management: $786.91 million (as of April 27, 2022)
  • Management Expense Ratio: 0.55%

iShares Gold Bullion ETF (CGL) is a fund that seeks to replicate the gold bullion price performance before fees and expenses.

It offers you targeted exposure to gold prices hedged against the Canadian dollar, letting you get convenient and cost-effective returns by indirectly investing in physical gold.

2. Horizons Enhanced Income Gold Producers ETF (HEP)

horizons logo

Some key facts about Horizons Enhanced Income Gold Producers ETF (HEP):

  • Ticker: TSX:HEP
  • Inception Date: April 11, 2011
  • Assets Under Management: $193.29 million (as of April 26, 2022)
  • Management Expense Ratio: 0.79%

Horizons Enhanced Income Gold Producers ETF (HEP) is a fund that provides you with investment returns by investing in a portfolio of companies that are primarily exposed to gold mining and exploration operations.

The fund allocates its assets to publicly-traded companies that rely heavily on gold prices for their financial performance. Its top holdings include Yamana Gold Inc., accounting for 8.53% of its asset allocation.

Royal Gold Inc. accounts for 8.53% of its asset allocation, and Newmont Corp. accounts for 7.96% of its asset allocation as of March 31, 2022.

3. Horizons Gold Yield ETF (HGY)

horizons logo

Some key facts about Horizons Gold Yield ETF (HGY):

  • Ticker: TSX:HGY
  • Inception Date: December 17, 2010
  • Assets Under Management: $72.71 million (as of April 26, 2022)
  • Management Expense Ratio: 0.98%

Horizons Gold Yield ETF (HGY) is a fund designed to provide you with exposure to the price of gold bullion hedged to the Canadian dollar, minus fees and expenses.

It delivers tax-efficient monthly distributions, and it uses a covered call option strategy for a third of its gold portfolio to mitigate downside risk while generating income.

Its primary holding is the SPDR Gold MiniShares Trust, accounting for 96.87% of its asset allocation. It is a slightly expensive fund, with an expense ratio of 0.98%.

4. IShares S&P/TSX Global Gold Index ETF (XGD)

ishares logo

Some key facts about iShares S&P/TSX Global Gold Index ETF (XGD):

  • Ticker: TSX:XGD
  • Inception Date: March 23, 2001
  • Assets Under Management: $1.24 billion (as of April 27, 2022)
  • Management Expense Ratio: 0.61%

IShares S&P/TSX Global Gold Index ETF (XGD) is a fund designed to provide you with long-term capital growth by replicating the performance of the S&P/TSX Global Gold Index.

The underlying index comprises a globally diversified portfolio of publicly-traded gold-producing companies with operations related to gold mining, exploration, and gold products.

The fund’s top holdings comprise Newmont Corp., accounting for 21.84% of its asset allocation as of April 26, 2022.

Barrick Gold Corp. is its second-largest holding at 15.11% of its asset allocation. Franco Nevada Corp. is third, with 11.01% of its asset allocation.

5. BMO Equal Weight Global Gold Index ETF (ZDG)

BMO logo

Some key facts about BMO Equal Weight Global Gold Index ETF (ZDG):

  • Ticker: TSX:ZDG
  • Inception Date: November 14, 2012
  • Assets Under Management: $49.07 billion (as of April 26, 2022)
  • Management Expense Ratio: 0.61%

BMO Equal Weight Global Gold Index ETF (ZDG) is a fund designed to provide you with investment returns based on the performance of the Solactive Equal Weight Global Gold Index.

The fund’s underlying index comprises a portfolio of market capitalization and liquidity screened publicly-traded companies in the gold industry worldwide. The fund’s top holding is Oceana Gold Corp., accounting for 3.74% of its asset allocation.

K92 Mining Inc. accounts for 3.62% of its asset allocation. Yamana Gold Inc. and SSR Mining Inc. account for 3.43% of the fund’s asset allocation each.

6. Harvest Global Gold Giants Index ETF (HGGG)

Harvest Portfolio Group Logo

Some key facts about Harvest Global Gold Giants Index ETF (HGGG):

  • Ticker: TSX:HGGG
  • Inception Date: January 7, 2019
  • Assets Under Management: $4.14 million (as of April 26, 2022)
  • Management Expense Ratio: 0.68%

Harvest Global Gold Giants Index ETF (HGGG) is a fund that is designed to provide you with investment returns based on the performance of the world’s leading and largest gold companies.

The fund tracks the performance of the Solactive Global Gold Giants Index TR. HGGG ETF is unique on this list because it narrows its focus on 20 equity securities of the largest gold industry giants in an equal weighting.

Some of its top holdings include Royal Gold Inc., accounting for 5.7% of its asset allocation. Northern Star Resources Ltd. accounts for 5.6% of its asset allocation, and so does Yamana Gold Inc.

7. Horizons Gold ETF (HUG)

horizons logo

Some key facts about Horizons Gold ETF (HUG):

  • Ticker: TSX:HUG
  • Inception Date: June 24, 2009
  • Assets Under Management: $20.00 million (as of April 26, 2022)
  • Management Expense Ratio: 0.30%

Horizons Gold ETF (HUG) is a fund designed to provide you with investment returns by endeavoring to correspond to the performance of the Solactive Gold Front Month MD Rolling Futures Index ER.

The underlying index tracks the performance of the front-month gold futures contracts and rolls the exposure over four days from the active contract into the next active contract, posting returns in USD.

HUG ETF hedges any US dollar gains or losses from its investment back to the Canadian dollar to mitigate currency fluctuation.

Top Silver ETFs In Canada

Top Silver ETFs In Canada

Silver ETFs are funds that track the performance of silver and silver-related assets, providing you with investment returns based on their performance. Silver’s performance is closely linked to gold, making it another popular hedge.

Like gold, it is not easy to invest in silver bullion. Fortunately, several funds invest in the metal itself or companies with operations linked to its price. This section of my guide to the best precious metals ETFs in Canada will cover the top silver ETFs you can consider.

The TSX does not boast many silver ETFs. However, there are funds listed on exchanges in the US stock market. This list will include several US-listed silver ETFs to provide you with a comprehensive list of assets you can consider for this purpose.

8. IShares Silver Trust ETF (SLV)

ishares logo

Some key facts about iShares Silver Trust ETF (SLV):

  • Ticker: NYSE Arca:SLV
  • Inception Date: April 21, 2006
  • Assets Under Management: US$13.65 billion (as of April 27, 2022)
  • Management Expense Ratio: 0.50%

IShares Silver Trust ETF (SLV) is a US-listed silver ETF. It is an atypical investment because it is not registered under the Investment Company Act of 1940 or a commodity pool to align with the Commodity Exchange Act.

The fund’s units are not subject to regulatory requirements like many other funds in Canada. SLV ETF seeks to provide you with returns based on the London Bullion Market Association silver price performance by directly holding silver bullion.

Listed on the NYSE Arca exchange, it offers returns in US dollars without hedging back to the Canadian dollar.

9. Horizons Silver Trust ETF (HUZ)

horizons logo

Some key facts about Horizons Silver Trust ETF (HUZ):

  • Ticker: TSX:HUZ
  • Inception Date: June 24, 2009
  • Assets Under Management: $25.83 million (as of April 26, 2022)
  • Management Expense Ratio: 0.78%

Horizons Silver Trust ETF (HUZ) is a Canada-listed fund that seeks to provide you with investment returns by replicating the performance of the Solactive Silver Front Month MD Rolling Futures Index ER.

The fund is denominated in Canadian dollars, and that means any US dollar gains or losses from the fund’s investments are hedged back to the Canadian dollar to mitigate the impact of currency fluctuations.

Established in 2009, HUZ ETF comes with an MER of 0.78%, making it slightly more expensive than several other silver ETFs.

10. Horizons BetaPro Silver 2X Daily Bull ETF (HZU)

horizons logo

Some key facts about Horizons BetaPro Silver 2X Daily Bull ETF (HZU):

  • Ticker: TSX:HZU
  • Inception Date: June 29, 2009
  • Assets Under Management: $65.88 million (as of April 26, 2022)
  • Management Expense Ratio: 1.36%

Horizons BetaPro Silver 2X Daily Bull ETF (HZU) is a fund that seeks to provide you with investment returns that reflect twice the daily performance of its referenced futures index.

The fund is denominated in Canadian dollars. The US-dollar returns from any investments it makes are hedged back to the Canadian dollar to mitigate the impact of currency fluctuation.

The fund tracks the daily performance of silver futures contracts issued by Canadian financial institutions.

It is the costliest fund on this list, with a 1.36% MER because it uses leverage to amplify its investment returns, justifying a higher expense ratio.

11. Sprott Physical Silver Trust ETF (PSLV)

Sprott Physical Silver Trust ETF

Some key facts about Sprott Physical Silver Trust ETF (PSLV):

  • Ticker: TSX:PSLV
  • Inception Date: October 27, 2010
  • Assets Under Management: $3.75 billion (as of April 27, 2022)
  • Management Expense Ratio: 0.62%

Sprott Physical Silver Trust ETF (PSLV) is another atypical silver ETF in that it caters to investors who would prefer holding physical ounces of silver.

The fund is essentially a closed-end trust that invests in unencumbered and fully-allocated London Good Delivery silver bars. Investing in PSLV ETF entitles you to receive silver bullion from its storage worldwide through armored carriers if you prefer to store it yourself.

The silver bullion held by the trust is stored in Canada, and you can redeem the dollar value of the units you have for actual silver each month.

12. Global X Silver Miners ETF (SIL)

Global X

Some key facts about Global X Silver Miners ETF (SIL):

  • Ticker: NYSE Arca:SIL
  • Inception Date: April 19, 2010
  • Assets Under Management: US$1.03 billion (as of April 26, 2022)
  • Management Expense Ratio: 0.65%

Global X Silver Miners ETF (SIL) is a fund that seeks to provide you with investment returns corresponding to the price and yield performance of the Solactive Silver Miners Total Returns Index.

As the fund’s name suggests, it offers you exposure to the silver mining industry instead of the precious metal itself. The fund invests in a globally diversified portfolio of publicly-traded companies with silver-related operations.

Its top holdings include Wheaton Precious Metals, accounting for 29.42% of its asset allocation.

Pan American Silver Corp. accounts for 10.755 of its asset allocation, and SSR Mining Inc. accounts for 7.43% of its asset allocation as of April 26, 2022.

13. ETFMG Prime Junior Silver ETF (SILJ)

ETFMG Prime Junior Silver ETF

Some key facts about ETFMG Prime Junior Silver ETF (SILJ):

  • Ticker: NYSE Arca:SILJ
  • Inception Date: November 28, 2012
  • Assets Under Management: US$844.93 million (as of April 27, 2022)
  • Management Expense Ratio: 0.69%

ETFMG Prime Junior Silver ETF (SILJ) is a fund that seeks to provide you with returns by tracking the performance of the Prime Junior Silver Miners & Explorers Index.

The fund’s underlying index is designed as a benchmark for investors interested in tracking a globally diversified portfolio of publicly-traded and small-cap companies in the silver mining, exploration, and production industry.

SLJ ETF’s top holdings as of April 27, 2022, include First Majestic Silver Corp., accounting for 13.12% of its asset allocation. Pan American Silver Corp. is its second-largest holding, with 12.38% of its asset allocation.

Yamana Gold Inc. is its third-largest holding, accounting for 8.79% of its asset allocation.

How To Buy The Best Precious Metals ETFs In Canada

The cheapest way to buy ETFs is from discount brokers. My top choices in Canada are:

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Conclusion

Best Precious Metals ETFs In Canada

Rare metals are not the only commodities that can deliver superior investment returns by offering you a hedge against inflationary environments and market volatility.

Check out my list of the best commodity ETFs in Canada that discusses several funds you can add to your portfolio if you want the security of commodity performance.

Many investors want to focus on investing in individual gold stocks to narrow their focus on the performance of the rare yellow metal.

If you want to invest in gold-related companies instead of buying gold bullion or investing in gold ETFs, check out my list of the top gold stocks in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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